Disney Interactive Finally Turns an Annual Profit Again

Disney Interactive Finally Turns an Annual Profit Again

In 2009, Disney merged the operations of their Internet and gaming divisions into a single subsidiary: Disney Interactive. Since then, they have never turned an individual annual profit for Disney. In 2009 they reported a loss of $295 million, but lessened the losses to only #81 million last fiscal year. Their futures changed this week when Disney posted their annual report, showing that not only was Disney Interactive profitable, they made $116 million in annual operating profit, which is a nice change of pace for the brand.

Most of this profit is attributed to the incredible success of Disney Infinity, with its gameplay and unique integration of a wide variety of interactive figures. Integrating characters from an array of Disney brands, including the uber popular Pixar and Marvel worlds.

President James Pitaro said of the success,

We are very pleased with the results of the first installment of (Disney Infinity) and we feel good about the launch of the second installment thus far. But we will have a better sense of overall performance as we enter the holiday season.

In addition to Disney Infinity, Disney Interactive saw growth come from mobile games. Their Star Wars free-to-play games, such as Assault Team, which were abandoned a few months ago, played a role. The real success in mobile came from expanding on the Frozen brand with Frozen Free Fall.

It hasn't been all rainbows and lollipops for Disney Interactive this year, however. Part of the operating profit came from March's layoff of 700 employees, which represented about a quarter of their workforce. Pitaro said at that time, "These are large-scale changes as we focus not just on getting to profitability but sustained profitability and scalability." It would appear that it helped.